QLP Funding – Funding for clinical negligence (CN) cases
5th March 2014
QLP are pleased to announce the launch of our clinical negligence disbursement funding facility, ‘QLP FUNDING’
A key point is that this facility is “off balance sheet”, this should please the financial bods within the firm as the often considerable cost for firms funding these disbursements will no longer have to be carried or be a drain on the overdraft facility.
So what are the main points to consider?
- A suitable After The Event (ATE) policy must be in place before funds are drawn down
- Backed by the ATE policy, the claimant pays nothing if the case loses
- The interest is insured
- Nothing to pay until conclusion
- All interest rolled up until conclusion
- Interest is charged on a simple basis, and not charged as “interest on interest”
- No time limit on case duration
- Unlimited number of drawdowns (each carries a charge)
- The ATE premium is deferred and conditional upon success
You, as the solicitor, are in charge of the case AND the funding, drawdown as often as you like (there is a fee payable each time) and as much as you require. The drawn down funds are used to pay the on-going disbursements of a case and are recoverable from the losing defendants. Simple interest on the amount drawn down, charged is rolled up until the end of the case and is paid from damages.
Should the case be lost the insurance policy covers the funded disbursements and interest thereon. There is no cost to your client.
So why use QLP, as a broker? Arranging funding and insurance involves a lot of time (and therefore cost) for solicitors. Using QLP can dramatically reduce this burden, one application to QLP can be presented to the funder and insurer simultaneously. We then act as a filter for the inevitable queries generated.
QLP are independent and experienced brokers and can usually select funders and insurers who have an appetite for a particular case, reducing time for obtaining offers of funding and insurance.
For the moment, this plan is only suitable for larger damages cases.